What a difference a day makes--maybe as much as $170 million a month! That's how much one industry source says banks could haul in as consumers bounce almost seven million more checks a month--now that the "float" is history.
If you count on the float, a grace period between when you write a share draft/check and when it clears your account, you could be one of those consumers if checks clear faster than you expect.
The float is gone because of today's technology and a new law called Check 21--or Check Clearing for the 21st Century Act--which was signed into law on October 28, 2003 and becomes effective on October 28, 2004. Check 21 is designed, among other things, to make the payments system more efficient.
You can avoid overdraft fees by knowing your balance and making sure funds are in the account when you write checks.
Brush up on your checking account basics by reading Keep Your Check Book Up-to-Date and using the calculator in that article to reconcile your account.
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